Validation on Pareto Optimality of Walrasian Virtual Market

Abstract

Walrasian market is one of the most common economic models for virtual market. In neoclassical economics, it is well-known that the allocation in an equilibrium state of Walrasian market is Pareto optimal. In this paper, we develop several Walrasian virtual markets based on multi-agent paradigm, and validate their Pareto optimality of the allocation by comparing our method with analytic approaches, such as the E-constraint method and the fixed point algorithm. We also discuss the efficiency of our method in terms of caliculation time.